Austerity debate after budget verdict: FDP wants to cut social benefits

As of: November 20, 2023 7:22 a.m

After the ruling from Karlsruhe, the traffic light is arguing about ways out of the budget crisis. The Greens are calling for changes to the debt brake. The FDP wants to put social benefits to the test. And the SPD warns against a halt to modernization.

In the debate about the consequences of the Federal Constitutional Court’s budget ruling, FDP parliamentary group leader Christian Dürr spoke out in favor of social cuts. “The coalition is called upon to find solutions to further consolidate state finances. We also have to talk about where the welfare state can make its contribution to budget consolidation,” Dürr told the newspapers of the Funke media group. “The fact is that money has to be generated before it can be distributed.” Tax increases are the wrong way to stimulate the German economy and make Germany competitive again.

FDP General Secretary Bijan Djir-Sarai emphasized in Report from Berlinhow important it is to have sound financial policy. “The state doesn’t have a revenue problem,” he said. This is also why he rejected tax increases. “The working people in this country must not be put under any further burden.”

Dröge: Debt brake “burdened business location”

The Greens spoke out against social cuts and for changes to the debt brake. “We Greens have been campaigning for many years to reform the debt brake because it is economically poorly designed,” said parliamentary group leader Katharina Dröge to the “Tagesspiegel”. The rule slows down necessary investments and is “in its current form a burden on Germany as a business location”. It is now becoming clear that the debt brake is not flexible enough to properly support people and companies, even in times of crisis.

Lang: Don’t skimp on social issues

The debt brake anchored in the Basic Law stipulates that the budgets of the federal and state governments must generally be balanced without income from loans. Exceptions are permitted in the event of natural disasters and in exceptional emergency situations, such as most recently due to the corona pandemic and the war in Ukraine. The debt brake has been debated for a few days because of a ruling by the Federal Constitutional Court, according to which loans for Corona aid cannot be moved to the climate fund. This will tear a hole of 60 billion euros in the federal government’s financial planning.

Green party leader Ricarda Lang warned on ZDF on Sunday evening that the country would be forced into an economic and therefore social crisis. Saving on social issues in particular was not a good idea, she said, because the government also had to maintain social cohesion. “We know that right-wing parties in particular repeatedly mobilize people’s social concerns and fears.”

Klingbeil: Don’t stop modernization

From the perspective of SPD leader Lars Klingbeil, the Federal Constitutional Court’s ruling must not lead to a halt to modernization in Germany. “Germany has rested too much on the status quo in recent years. We feel this every day when trains don’t run or bridges don’t support,” Klingbeil told the dpa news agency. “The Federal Constitutional Court’s decision must not mean that we stop modernizing our country. For us, it is about jobs and ensuring that we remain a strong business location,” said Klingbeil. Investments and planning security are needed to bring the country into shape. “Anyone who doesn’t see this hasn’t understood the seriousness of the situation.”

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